[Federal Register Volume 80, Number 121 (Wednesday, June 24, 2015)]
[Rules and Regulations]
[Pages 36231-36234]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15423]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1205

[AMS-CN-12-0059]


Cotton Research and Promotion Program: Procedures for Conduct of 
Sign-up Period

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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[[Page 36232]]

SUMMARY: This rule amends the rules and regulations regarding the 
procedures for the conduct of a sign-up period for eligible cotton 
producers and importers to request a continuance referendum on the 1991 
amendments to the Cotton Research and Promotion Order (Order) provided 
in the 1990 amendments to the Cotton Research and Promotion Act (Act). 
The amendments update various dates, name changes, addresses, and make 
other administrative changes.

DATES: Effective Date: July 24, 2015.

FOR FURTHER INFORMATION CONTACT: Shethir M. Riva, Chief, Research and 
Promotion Staff, Cotton and Tobacco Program, Agricultural Marketing 
Service, USDA, 100 Riverside Parkway, Suite 101, Fredericksburg, 
Virginia 22406, telephone (540) 361-2726, facsimile (540) 361-1199, or 
email at [email protected].

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 and Executive Order 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health, and safety effects, distributive impacts and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
This action has been designated as a ``non-significant regulatory 
action'' under Sec.  3(f) of Executive Order 12866. Accordingly, the 
Office of Management and Budget (OMB) has waived the review process.

Executive Order 13175

    This action has been reviewed in accordance with the requirements 
of Executive Order 13175, Consultation and Coordination with Indian 
Tribal Governments. The review reveals that this rule would not have 
substantial and direct effects on Tribal governments and would not have 
significant tribal implications.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have retroactive effect.
    The Cotton Research and Promotion Act (7 U.S.C. 2101-2118) (Act) 
provides that administrative proceedings must be exhausted before 
parties may file suit in court. Under section 12 of the Act, any person 
subject to an order may file with the Secretary of Agriculture 
(Secretary) a petition stating that the order, any provision of the 
plan, or any obligation imposed in connection with the order is not in 
accordance with law and requesting a modification of the order or to be 
exempted therefrom. Such person is afforded the opportunity for a 
hearing on the petition. After the hearing, the Secretary would rule on 
the petition. The Act provides that the District Court of the United 
States in any district in which the person is an inhabitant, or has his 
principal place of business, has jurisdiction to review the Secretary's 
ruling, provided a complaint is filed within 20 days from the date of 
the entry of ruling.

Regulatory Flexibility Act

    In accordance with the Regulatory Flexibility Act (RFA) [5 U.S.C. 
601-612], the Agricultural Marketing Service (AMS) has examined the 
economic impact of this rule on small entities. The purpose of the RFA 
is to fit regulatory actions to the scale of businesses subject to such 
action so that small businesses will not be unduly or 
disproportionately burdened. The Small Business Administration defines, 
in 13 CFR part 121, small agricultural producers as those having annual 
receipts of no more than $750,000 and small agricultural service firms 
(importers) as having receipts of no more than $7,000,000. In 2014, an 
estimated 16,000 producers, and approximately 20,000 importers were 
subject to the order. The majority of these producers and importers are 
small businesses under the criteria established by the Small Business 
Administration.
    There are no Federal rules that duplicate, overlap, or conflict 
with this rule.
    Only those eligible persons who are in favor of conducting a 
referendum would need to participate in the sign-up period. Of the 
46,220 total valid ballots received in the 1991 referendum, 27,879, or 
60 percent, favored the amendments to the Order, and 18,341, or 40 
percent, opposed the amendments to the Order. This rule will provide 
those persons who are not in favor of the continuance of the Order 
amendments an opportunity to request a continuance referendum.
    The eligibility and participation requirements for producers and 
importers are substantially the same as the rules that established the 
eligibility and participation requirements for the 1991 referendum, and 
for the 1997, 2001, and 2007 sign-up periods. The sign-ups in 1997, 
2001, and 2007 sign-ups did not generate the required number of 
signatures to hold another referendum. The amendments in this action 
would update various dates, name changes, addresses, and make other 
miscellaneous changes.
    The sign-up procedures would not impose a substantial burden or 
have a significant impact on persons subject to the Order, because 
participation is not mandatory, not all persons subject to the Order 
are expected to participate, and USDA will determine producer and 
importer eligibility. The information collection requirements under the 
Paperwork Reduction Act are minimal.

Paperwork Reduction Act

    The information collections proposed by this rule will be carried 
out under the OMB Control Number 0581-0093. This rule will not add to 
the overall burden currently approved by OMB and assigned OMB Control 
Number 0581-0093 under the provisions of the Paperwork Reduction Act of 
1995 (44 U.S.C. Chapter 35). This OMB Control Number is referenced in 
section 1205.541 of the regulations.

Background

    The 1991 amendments to the Cotton Research and Promotion Order (7 
CFR part 1205) were implemented following the July 1991 referendum. The 
amendments were provided for in the 1990 amendments to the Cotton 
Research and Promotion Act (7 U.S.C. 2101-2118). These amendments 
provided for: (1) Importer representation on the Cotton Board by an 
appropriate number of persons, to be determined by USDA, who import 
cotton or cotton products into the U.S., and whom USDA selects from 
nominations submitted by importer organizations certified by USDA; (2) 
assessments levied on imported cotton and cotton products at a rate 
determined in the same manner as for U.S. cotton; (3) increasing the 
amount USDA can be reimbursed for the conduct of a referendum from 
$200,000 to $300,000; (4) reimbursing government agencies that assist 
in administering the collection of assessments on imported cotton and 
cotton products; and (5) terminating the right of producers to demand a 
refund of assessments.
    On May 29, 2013, USDA issued a determination based on its review 
(78 FR 32228), not to conduct a referendum regarding the 1991 
amendments to the Order; however, the Act provides that USDA shall 
nevertheless conduct a referendum at the request of 10 percent or more 
of the total number of eligible producers and importers that voted in 
the most recent referendum. The Act provides for a sign-up period 
during

[[Page 36233]]

which eligible cotton producers and importers may request that USDA 
conduct a referendum on continuation of the 1991 amendments to the 
Order. Accordingly, USDA will provide all eligible Upland cotton 
producers and importers an opportunity to request a continuance 
referendum regarding the 1991 amendments to the Order.
    Pursuant to section 8(c) of the Act, the sign-up period will be 
provided for all eligible producers and importers. Eligible cotton 
producers will be provided the opportunity to sign-up to request a 
continuance referendum in person at the county Farm Service Agency 
(FSA) office where their farm is located. If a producer's land is in 
more than one county, the producer shall sign-up at the county office 
where FSA administratively maintains and processes the producer's farm 
records. Producers may alternatively request a sign-up form in the mail 
from the same office or through the USDA, AMS Web site: http://www.ams.usda.gov/Cotton and return it to their FSA office or return 
their signed request forms to USDA, Agricultural Marketing Service, 
Cotton and Tobacco Program, Attention: Cotton Sign-Up, P.O. Box 23181, 
Washington, DC 20077-8249.
    Eligible importers would be provided the opportunity to sign up to 
request a continuance referendum by downloading a form from the AMS Web 
site, or request a sign-up form by contacting [email protected] or 
(540) 361-2726 and return their signed request forms to USDA, 
Agricultural Marketing Service, Cotton and Tobacco Program, Attention: 
Cotton Sign-Up, P.O. Box 23181, Washington, DC 20077-8249.
    Such request must be accompanied by a copy of the U.S. Customs and 
Border Protection form 7501 showing payment of a cotton assessment for 
calendar year 2014. Requests and supporting documentation should be 
mailed to USDA, AMS, Cotton and Tobacco Program, Attention: Cotton 
Sign-Up, P.O. Box 23181, Washington, DC 20077-8249.
    The sign-up period will be from August 3, 2015, through August 14, 
2015. Producer and importer forms shall only be counted if received by 
USDA during the stated sign-up period.
    Section 8(c)(2) of the Act provides that if USDA determines, based 
on the results of the sign-up, that 10 percent or more of the total 
number of eligible producers and importers that voted in the most 
recent 1991 referendum (i.e., 4,622) request a continuance referendum 
on the 1991 amendments, a referendum will be held within 12 months 
after the end of the sign-up period. In counting such requests, 
however, not more than 20 percent may be from producers from any one 
state or from importers of cotton. For example, when counting the 
requests, the AMS Cotton and Tobacco Program would determine the total 
number of valid requests from all cotton-producing states and from 
importers. Not more than 20 percent of the total requests will be 
counted from any one state or from importers toward reaching the 10 
percent for 4,622 total signatures required to call for a referendum. 
If USDA determines that 10 percent or more of the number of producers 
and importers who voted in the most recent referendum favor a 
continuance referendum, a referendum will be held.
    This rule amends the procedures for the conduct of the current 
sign-up period. The current rules and regulations provide for sections 
on definitions, supervision of the sign-up period, eligibility, 
participation in the sign-up period, counting requests, reporting 
results and instructions and forms.
    In Sec. Sec.  1205.20, 1205.26, and 1205.27 ``calendar year 2006'' 
changes to ``calendar year 2014.'' Also, in Sec.  1205.26, eligible 
persons are further defined to ensure that all producers that planted 
cotton during 2014 will be eligible to participate in the sign-up 
period. In Sec. Sec.  1205.27, 1205.28, and 1205.29 sign-up period 
conduct dates, FSA reporting dates, and mailing addresses are updated. 
Under Sec.  1205.27(b), AMS will post information in its Web site 
rather than mailing a form to each known importer. Before the start of 
the sign-up period, AMS will post sign-up information, including sign-
up forms, on its Web site: http://www.ams.usda.gov/Cotton.
    A proposed rule with a request for comments was published in the 
Federal Register on April 13, 2015, (80 FR 19567). In addition, AMS 
Cotton and Tobacco Program distributed and posted a Notice to the Trade 
on its Web site at: http://www.ams.usda.gov/cotton, under ``Cotton 
Research and Promotion 5-Year Review & Sign-up.'' No comments were 
received on the proposed rule. While AMS received no comments during 
the proposed rule comment period suggesting that the timeframe was 
insufficient, AMS identified a beneficial change and will amend the 
sign-up dates and FSA reporting dates to allow for a thirty-day 
effective date for this final rule.
    This rule amends the subpart pertaining to established procedures 
for use during the sign-up period. Accordingly, AMS is amending the 
regulations as proposed in the Notice of Proposed Rulemaking with 
additional changes to the sign-up dates and the FSA reporting dates to 
take into account the effective date of this final rule.

List of Subjects in 7 CFR Part 1205

    Advertising, Agricultural research, Cotton, Marketing agreements, 
Reporting and recordkeeping requirements.

7 CFR part 1205, subpart 1205.10 through 1205.30

    For the reasons set forth in the preamble, 7 CFR part 1205 is 
amended as follows:

PART 1205--COTTON RESEARCH AND PROMOTION

0
1. The authority citation part 1205 is revised to read as follows:

    Authority: 7 U.S.C. 2101-2118.


0
2. Section 1205.20 is revised to read as follows:


Sec.  1205.20  Representative period.

    The term representative period means the 2014 calendar year.

0
3. In Sec.  1205.26, paragraphs (a)(1) and (2) are revised to read as 
follows:


Sec.  1205.26  Eligibility.

* * * * *
    (a) * * *
    (1) any person who was engaged in the production of Upland cotton 
during calendar year 2014; and
    (2) any person who was an importer of Upland cotton and imported 
Upland cotton in excess of the value of $2.00 per line item entry 
during calendar year 2014.
* * * * *

0
4. Section 1205.27 is revised to read as follows:


Sec.  1205.27  Participation in the sign-up period.

    The sign-up period will be from August 3, 2015, until August 14, 
2015. Those persons who favor the conduct of a continuance referendum 
and who wish to request that USDA conduct such a referendum may do so 
by submitting such request in accordance with this section. All 
requests must be received by the appropriate USDA office by August 14, 
2015.
    (a) Before the sign-up period begins, FSA shall establish a list of 
known, eligible, Upland cotton producers in the county that it serves 
during the representative period, and AMS shall also establish a list 
of known, eligible Upland cotton importers.
    (b) Before the start of the sign-up period, AMS will post sign-up 
information, including sign-up forms,

[[Page 36234]]

on its Web site: http://www.ams.usda.gov/Cotton. Importers who favor 
the conduct of a continuance referendum can download a form from the 
Web site, or request a sign-up form by contacting [email protected] 
or (540) 361-2726 and one will be provided to them. Importers may 
participate in the sign-up period by submitting a signed, written 
request for a continuance referendum, along with a copy of a U.S. 
Customs and Border Protection form 7501 showing payment of a cotton 
assessment for calendar year 2014. The USDA, AMS, Cotton and Tobacco 
Program, Attention: Cotton Sign-Up, P.O. Box 23181, Washington, DC 
20077-8249 shall be considered the polling place for all cotton 
importers. All requests and supporting documents must be received by 
August 14, 2015.
    (c) Each person on the county FSA office lists may participate in 
the sign-up period. Eligible producers must date and sign their name on 
the ``County FSA Office Sign-up Sheet.'' A person whose name does not 
appear on the county FSA office list may participate in the sign-up 
period. Such person must be identified on FSA-578 during the 
representative period or provide documentation that demonstrates that 
the person was a cotton producer during the representative period. 
Cotton producers not listed on the FSA-578 shall submit at least one 
sales receipt for cotton they planted during the representative period. 
Cotton producers must make requests to the county FSA office where the 
producer's farm is located. If the producer's land is in more than one 
county, the producer shall make request at the county office where FSA 
administratively maintains and processes the producer's farm records. 
It is the responsibility of the person to provide the information 
needed by the county FSA office to determine eligibility. It is not the 
responsibility of the county FSA office to obtain this information. If 
any person whose name does not appear on the county FSA office list 
fails to provide at least one sales receipt for the cotton they 
produced during the representative period, the county FSA office shall 
determine that such person is ineligible to participate in the sign-up 
period, and shall note ``ineligible'' in the remarks section next to 
the person's name on the county FSA office sign-up sheet. In lieu of 
personally appearing at a county FSA office, eligible producers may 
request a sign-up form from the county FSA office where the producer's 
farm is located. If the producer's land is in more than one county, the 
producer shall make the request for the sign-up form at the county 
office where FSA administratively maintains and processes the 
producer's farm records. Such request must be accompanied by a copy of 
at least one sales receipt for cotton they produced during the 
representative period. The appropriate FSA office must receive all 
completed forms and supporting documentation by August 14, 2015.

0
5. In Sec.  1205.28, the first sentence is revised to read as follows:


Sec.  1205.28  Counting.

    County FSA offices and FSA, Deputy Administrator for Field 
Operations (DAFO), shall begin counting requests no later than August 
14, 2015. * * *

0
6. Section 1205.29 is revised to read as follows:


Sec.  1205.29  Reporting results.

    (a) Each county FSA office shall prepare and transmit to the state 
FSA office, by August 21, 2015, a written report of the number of 
eligible producers who requested the conduct of a referendum, and the 
number of ineligible persons who made requests.
    (b) DAFO shall prepare, by August 21, 2015, a written report of the 
number of eligible importers who requested the conduct of a referendum, 
and the number of ineligible persons who made requests.
    (c) Each state FSA office shall, by August 21, 2015, forward all 
county reports to DAFO. By August 28, 2015, DAFO shall forward its 
report of the total number of eligible producers and importers that 
requested a continuance referendum, through the sign-up period, to the 
Deputy Administrator, Cotton and Tobacco Program, Agricultural 
Marketing Service, USDA, 100 Riverside Parkway, Suite 101, 
Fredericksburg, Virginia 22406.


    Authority: 7 U.S.C. 2101-2118.

    Dated: June 18, 2015.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2015-15423 Filed 6-23-15; 8:45 am]
BILLING CODE 3410-02-P